New pricing at Canada Post

Canada Post’s new rate for domestic basic Lettermail™ took effect 11 January. The new stamp rates were outlined in the rate plan publicly proposed last June, at which time Canadians were invited to make submissions. The Government of Canada approved the plan in October 2009, a decision that was published in the Canada Gazette.

The plan notes that the basic domestic stamp rate increases by three cents from 54 cents to 57 cents for letters weighing less than 30 grams. A two-cent increase to $1 also takes effect for letters, cards and postcards to the United States and a five-cent increase to $1.70 for international destinations.

Domestic stamp rates will increase two cents a year from 2011 to 2014, according to the approved five-year plan.

Once the plan is complete, Canadians will still enjoy one of the lowest rates for domestic stamps among developed countries based on current trends.

In addition, small businesses will benefit from a new one-time rebate that Canada Post is offering to offset the initial effect of the three-cent increase this year. The average Canadian household purchases 45 stamps per year, implying an additional cost of $3 per household over the next five years. For Canadian consumers and small businesses looking to cushion the impact of a rate increase, PERMANENTTM stamps can always be purchased and used at any time.

The new pricing positions Canada Post to address three key challenges: the growing number of addresses it serves every day; considerable declines in the volume of Lettermail items; and the pressing need for investments in infrastructure that are critical to protect the services Canadians already enjoy, wherever they live.

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